Chinese electric vehicle startup BYD is on track to surpass Tesla in battery electric vehicle (BEV) sales this year, with its market share expected to surge significantly, according to Counterpoint Research released Tuesday. This marks a significant shift in the global EV market, showcasing the dynamic and competitive nature of the industry.
Counterpoint analysts highlighted the changing landscape in their report, stating, “This shift underscores the dynamic nature of the global EV market.” BYD’s performance in the second quarter exemplifies this change, as the company’s battery EV sales soared nearly 21% year on year to 426,039 units, based on CNBC’s calculations. In contrast, Tesla’s second-quarter deliveries saw a decline of 4.8%, totaling 443,956 vehicles.
A detailed look at the production figures reveals that last year, BYD’s total output, which includes both battery-only vehicles and hybrids, exceeded 3 million units, surpassing Tesla’s production of 1.84 million cars for the second consecutive year. Specifically, BYD manufactured 1.6 million battery-only passenger cars and 1.4 million hybrids, maintaining Tesla’s lead in BEV production but showcasing BYD’s comprehensive growth in the EV sector.
Despite BYD’s overall strong performance, it lost the top EV vendor spot to Tesla in the first quarter. Nonetheless, Counterpoint’s analysis positions China as a dominant force in the BEV market, with BYD leading the charge. The research firm predicts that China’s BEV sales will be four times that of North America’s in 2024, underscoring the country’s significant role in the global market.
According to Counterpoint, China will maintain more than a 50% market share of global BEV sales until 2027. Furthermore, Chinese BEV sales are projected to surpass the combined sales of North America and Europe by 2030, reflecting the robust growth and market penetration of Chinese EV manufacturers.
Last month, the European Union announced plans to impose additional tariffs on Chinese EV firms to address the “threat of clearly foreseeable and imminent injury to EU industry.” These tariffs will significantly impact key players like BYD, Geely, and SAIC.
- BYD: Subject to an additional tariff of 17.4%
- Geely: Will incur an extra 20% duty
- SAIC: Faces the highest additional duty at 38.1%
These tariffs are in addition to the standard 10% duty already applied to imported EVs. The European Commission stated that these duties are currently provisional but will be implemented from July 4 if ongoing discussions with Chinese authorities do not result in a resolution.
The introduction of these tariffs marks a critical juncture in the global EV market, particularly for Chinese manufacturers. While these measures aim to protect the EU industry, they also pose significant challenges for Chinese firms trying to expand their presence in the European market.
- BYD is on track to overtake Tesla in BEV sales this year.
- BYD’s second-quarter battery EV sales increased by nearly 21%.
- Tesla’s second-quarter deliveries fell by 4.8%.
- China’s BEV sales are projected to remain dominant, outpacing North America and Europe.
- The European Union’s additional tariffs pose new challenges for Chinese EV manufacturers.
| Manufacturer | Q2 Sales 2023 | Q2 Sales 2022 | % Change Year on Year |
|---|---|---|---|
| BYD | 426,039 | 352,231 | +21% |
| Tesla | 443,956 | 466,140 | -4.8% |
The above table highlights the comparative performance of BYD and Tesla, showcasing BYD’s significant year-on-year growth and Tesla’s slight decline in deliveries.
- Battery-only vehicles: 1.6 million units
- Hybrids: 1.4 million units
- Total production in 2022: Over 3 million units
In contrast, Tesla’s total production in 2022 stood at 1.84 million cars, with a focus solely on battery electric vehicles.
China continues to be a leading force in the BEV market, driven by strong domestic manufacturers like BYD. The country’s BEV sales are expected to be four times that of North America in 2024, highlighting the significant gap and growth potential in the region.
Projected Market Share:
- China’s market share until 2027: Over 50%
- Chinese BEV sales by 2030: Expected to top combined sales of North America and Europe
The European Union’s additional tariffs on Chinese EV manufacturers are expected to impact the market dynamics significantly. BYD, Geely, and SAIC will face increased duties, potentially affecting their competitive edge in the European market.
BYD’s trajectory in the BEV market illustrates the shifting dynamics of the global EV industry. With substantial growth in sales and production, coupled with the challenges posed by new tariffs, BYD’s journey underscores the competitive and evolving nature of the electric vehicle market. As the company continues to expand its footprint, it will play a crucial role in shaping the future of the global EV landscape.
Featured Image courtesy of Caixin Global